American River Bankshares (NASDAQ:AMRB) today reported net income
of $1.3 million, or $0.19 per diluted share for the second quarter
of 2016 compared to $1.4 million, or $0.18 per diluted share for
the second quarter of 2015. For the six months ended June 30,
2016, net income was $2.7 million or $0.39 per diluted share,
compared to $2.3 million or $0.30 per diluted share for the six
months ended June 30, 2015.
“Second quarter highlights include a $12.9 million, or 18.0%
annualized, increase in loans and a year-to-date increase in
earnings per share of 30%,” said David Taber, President and CEO of
American River Bankshares. “The increase in EPS is a direct
result of the increase in net income and the successful stock
repurchase programs including the acquisition of another 5% of the
Company’s outstanding shares during the quarter.”
Financial Highlights
- Net loans increased $12.9 million (4%) and core deposits
increased $3 million (1%) during the second quarter of 2016.
- The second quarter 2016 net interest margin was 3.64%, compared
to 3.69% for the second quarter of 2015. For the six months
ended June 30, 2016, the net interest margin was 3.64%, compared to
3.58% for the six months ended June 30, 2015.
- Net interest income was $5.0 million in the second quarter
2016, unchanged from the second quarter of 2015. For the six
months ended June 30, 2016, net interest income was $10.1 million,
compared to $9.7 million for the six months ended June 30,
2015.
- The allowance for loan and lease losses was $5.1 million (1.65%
of total loans and leases) at June 30, 2016, compared to $5.4
million (1.91% of total loans and leases) at June 30, 2015.
The allowance for loan and lease losses to nonperforming loans and
leases was 486.4% at June 30, 2016, compared to 218.4% at June 30,
2015.
- Shareholders’ equity was $83.6 million at June 30, 2016
compared to $85.3 million at March 31, 2016 and $88.2 million at
June 30, 2015. Tangible book value per share was $10.10 at
June 30, 2016 compared to $9.86 at March 31, 2016 and $9.30 at June
30, 2015. Book value per share was $12.56 per share at June
30, 2016 compared to $12.20 per share at March 31, 2016 and $11.41
at June 30, 2015.
- On April 21, 2016, the Company announced its second 5% Stock
Repurchase Program for 2016. During the second quarter of
2016, the Company successfully acquired 5% of its outstanding
common shares, a total of 349,715 shares, at an average price of
$10.29 per share. During 2016, the Company has repurchased
716,897 shares of its common stock under the 2016 Stock Repurchase
Program, also at an average price of $10.29 per share.
- The Company continues to maintain strong capital ratios.
At June 30, 2016 the Leverage ratio was 10.4% compared to 10.6% at
March 31, 2016 and 11.5% at June 30, 2015; the Tier 1 Risk-Based
Capital ratio was 18.0% compared to 18.9% at March 31, 2016 and
20.0% at June 30, 2015; and the Total Risk-Based Capital ratio was
19.2% compared to 20.2% at March 31, 2016 and 21.3% at June 30,
2015.
Northern California Economic Update, June 30,
2016
Each quarter, management at American River Bank prepares an
economic report for internal use that analyzes the recent
historical rolling quarters within the three primary markets in
which the Company does business – Greater Sacramento Area and
Sonoma and Amador Counties. Sources of economic and industry
information include: Colliers International, Keegan & Coppin
Company, Inc., ycharts/housing, State of California Employment
Development Department, US Census, CBRE, Integra Realty Resources,
and Sacramento Association of Realtors and Trading
Economics.
Overall, 2015 commercial real estate results as well as
employment trends have been mostly positive and that trend
continues into 2016.
Commercial Real Estate. In the Greater
Sacramento Area, when comparing first quarter 2015 to first quarter
2016, commercial real estate vacancies have improved in all
segments. Office vacancy decreased from 14.0% to 13.0%,
retail vacancy decreased from 11.2% to 10.2%, and industrial
vacancy decreased from 10.4% to 9.8%. In Sonoma County, for
the same period (first quarter 2015 compared to first quarter
2016), commercial real estate vacancies have improved in all
segments as well. Office vacancy decreased from 17.5% to
15.6%, retail vacancy decreased slightly from 4.0 % to 3.8%, and
industrial vacancy decreased from 7.1% to 5.6%.
The Greater Sacramento Area reported positive absorption each
quarter over the past 3 years in all segments (office, retail, and
industrial). However, in the first quarter of 2016 absorption
was negative for both office and retail. This change was
primarily the result of two large office building vacancies, and
one major retailer closing its doors. Sonoma County has
also reported (when data is available) positive absorption each
quarter over the past 3 years for all segments, and continues to do
so as of first quarter 2016.
In Greater Sacramento, commercial lease rates have been in a
relatively narrow range over the last two years through the end of
the first quarter 2016 with lease rates ranging from the following:
office: $1.66/SF to $1.77/SF; retail: $1.33/SF to $1.40/SF and
industrial: $0.35/SF to $0.46/SF. As of first quarter
2016, lease rates per square foot were $1.77 for office, $1.33 for
retail, and $0.46 for industrial. As a proxy for Sonoma
County, gross lease rates in the City of Santa Rosa for the past
two years through the end of the fourth quarter of 2015 have shown
some fluctuation in office and industrial segments and decreased in
the retail segment. The lease rates during the two year
period ranged from: office: $1.47/SF to $1.88/SF, retail: $0.90/SF
to $1.52/SF, and industrial: $0.66/SF to $0.95/SF.
The Amador region has the lowest level of commercial real estate
concentration in the Bank. There is limited supply for
commercial real estate in this region and as a result, minimal
information is available.
Employment. National unemployment, which
reached a high of 10.0% at October 31, 2009, has dropped steadily
over the past few years and has stabilized. Compared to
December 2014, national unemployment decreased from 5.6% to 5.0% in
December 2015, and decreased further to 4.7% as of May 2016.
California unemployment was 9.6% at December 31, 2012, 8.2% at
December 31, 2013, 6.9% at December 31, 2014, and 5.9% at December
31, 2015. As of May 2016, the rate decreased to 5.2%.
The number of employed Californians continues to increase. There
were 17.1 million employed at the end of 2013, 17.6 million
employed at the end of 2014, and 17.9 million employed at the end
of 2015. The State added another 203,000 jobs during the
first six months of 2016.
At December 31, 2014, all three of our markets reported lower
unemployment rates than at year end 2013. This trend
continued into 2015 and at December 31, 2015, unemployment rates
were 5.5% and 4.2% for the Sacramento MSA and Santa Rosa-Petaluma
MSA, respectively. As of May 31, 2016, these figures were
4.7% and 3.5%, respectively, both below State unemployment
figures. Over the same period, Amador County has been higher
than the State every quarter with the exception of the third
quarter 2015. Amador County had shown significant improvement
from 7.4% at December 31, 2014 to 6.3% at December 31, 2015, and at
May 31, 2016 has decreased to 5.3%.
Job growth was positive in all of our markets in 2014, 2015, and
as of May 31, 2016. Compared to December 2014, job growth was
1.06%, 2.13% and 0.61% for the Sacramento MSA, Santa Rosa-Petaluma
MSA and Amador County, respectively, at December 31, 2015. As
of May 31, 2016, job growth was 0.16%, .72% and 1.67% for the
Sacramento MSA, Santa Rosa-Petaluma MSA and Amador County,
respectively.
Asset Quality and Balance Sheet Review
American River Bankshares’ assets totaled $625.8 million at June
30, 2016, compared to $634.6 million at December 31, 2015, and
$616.9 million at June 30, 2015.
Net loans totaled $305.1 million at June 30, 2016, an increase
from $289.1 million at December 31, 2015 and $275.4 million at June
30, 2015. The loan portfolio at June 30, 2016 included: real
estate loans of $269.1 million (86% of the portfolio), commercial
loans of $36.2 million (11% of the portfolio) and other loans,
which consist mainly of leases and consumer loans of $5.2 million
(3% of the portfolio). The real estate loan portfolio at June
30, 2016 includes: owner-occupied commercial real estate loans of
$78.8 million (29% of the real estate portfolio), investor
commercial real estate loans of $124.6 million (46% of the real
estate portfolio), construction and land development loans of $13.8
million (5% of the real estate portfolio) and other loans, which
consists of residential and multi-family real estate loans of $51.9
million (20% of the real estate loan portfolio).
Nonperforming assets (“NPAs”) include nonperforming loans and
leases, other real estate owned (“OREO”), and other assets.
Nonperforming loans includes all loans and leases that are either
placed on nonaccrual status or are 90 days past due as to principal
or interest but still accrue interest because these loans are
well-secured and in the process of collection. Nonperforming
loans decreased $1.4 million (56.0%) from $2.5 million at June 30,
2015 to $1.1 million at June 30, 2016. Nonperforming loans
decreased $500,000 (31.3%) from $1.6 million at December 31,
2015. NPAs declined to $2.8 million at June 30, 2016 from
$6.1 million at December 31, 2015 and from $7.1 million at June 30,
2015. The NPAs to total assets ratio stood at 0.45% at the
end of June 2016, down from 0.96% at December 2015 and 1.15% one
year ago.
At June 30, 2016, the Company had two OREO properties totaling
$896,000. This compares to three OREO properties totaling
$3.6 million at December 31, 2015 and four OREO properties totaling
$3.8 million at June 30, 2015. During the second quarter of
2016, the Company did not add or sell any property. There was
no OREO valuation allowance recorded at June 30, 2016, December 31,
2015, or June 30, 2015.
Loans measured for impairment were $20.8 million at the end of
June 2016, a decrease compared to $21.4 million at December 31,
2015, and $23.8 million a year ago. Specific reserves of
$904,000 were held on the impaired loans at June 30, 2016, compared
to $899,000 at December 31, 2015 and $1,453,000 at June 30,
2015. There was no provision for loan and lease losses for
the second quarters of 2016 and 2015. The Company had net
recoveries of $50,000 in the second quarter of 2016 compared to net
recoveries of $51,000 in the second quarter of 2015. For the
first six months of 2016, the Company had net recoveries of
$157,000 compared to net recoveries of $58,000 in the first six
months of 2015. The Company maintains the allowance for loan
and lease losses at a level believed to be adequate for known and
inherent risks in the portfolio. The methodology incorporates a
variety of risk considerations, both quantitative and qualitative,
in establishing an allowance for loan and lease losses that
management believes is appropriate at each reporting
date.
Investment securities, which excludes $3.8 million in stock of
the Federal Home Loan Bank of San Francisco (“FHLB Stock”), totaled
$255.0 million at June 30, 2016, down 7.1% from $274.4 million at
December 31, 2015 and 7.9% from $277.0 million at June 30,
2015. At June 30, 2016, the investment portfolio was
comprised of 90% U.S. Government agencies or U.S.
Government-sponsored agencies (primarily mortgage-backed
securities), 9% obligations of states and political subdivisions,
and 1% corporate bonds.
At June 30, 2016, total deposits were $525.9 million, compared
to $530.7 million at December 31, 2015 and $512.0 million one year
ago. Core deposits increased 4.5% to $443.3 million at June
30, 2016 from $424.3 million at June 30, 2015 and decreased 0.6%
from $446.1 million at December 31, 2015. The Company
considers all deposits except time deposits as core deposits.
At June 30, 2016, noninterest-bearing demand deposits accounted
for 37% of total deposits, interest-bearing demand accounts were
12%, savings deposits were 11%, money market balances accounted for
24% and time certificates were 16% of total deposits. At June
30, 2015, noninterest-bearing demand deposits accounted for 34% of
total deposits, interest-bearing demand accounts were 12%, savings
deposits were 11%, money market balances accounted for 26% and time
certificates were 17% of total deposits.
Shareholders’ equity decreased to $83.6 million at June 30, 2016
compared to $86.1 million at December 31, 2015 and from $88.2
million at June 30, 2015. The $2.5 million (2.9%) decrease in
equity from December 31, 2015 was due primarily to a decrease in
common stock of $7.3 million related to repurchases made under the
2016 Stock Repurchase Program, partially offset by an increase in
Retained Earnings of $2.7 million due to the net income for the
year and a $2.1 million increase in accumulated other comprehensive
income related to an increase in the unrealized gain on securities.
In 2016, the Company repurchased 716,897 shares of its common
stock at an average price of $10.29 per share.
Net Interest Income
The net interest income during the second quarters of 2016 and
2015 remained consistent at $5.0 million and for the six months
ended June 30, 2016, net interest income increased 4.1% to $10.1
million from $9.7 million for the six months ended June 30,
2015. The net interest margin as a percentage of average
earning assets was 3.64% in the second quarter of 2016, compared to
3.63% in the first quarter of 2016 and 3.69% in the second quarter
of 2015. For the six months ended June 30, 2016, the net
interest margin was 3.64% compared to 3.58% for the six months
ended June 30, 2015. Interest income for the second quarter
of 2016 decreased 1.9% to $5.2 million from $5.3 million for the
second quarter of 2015 and for the six months ended June 30, 2016,
interest income increased 2.9% to $10.5 million from $10.2 million
for the six months ended June 30, 2015. Interest expense for
the second quarter of 2016 decreased 9.4% to $221,000 from $244,000
for the second quarter of 2015 and for the six months ended June
30, 2016 decreased 7.5% to $455,000 from $492,000 for the six
months ended June 30, 2015.
The average tax equivalent yield on earning assets decreased
from 3.87% in the second quarter of 2015 to 3.80% for the second
quarter of 2016 and for the six months ended June 30, 2016
increased to 3.80% from 3.75% for the six months ended June 30,
2015. The decrease in yield on earning assets from the second
quarter of 2015 to the second quarter of 2016 results from a
special one-time cash dividend received in June of 2015 from the
Federal Home Loan Bank of San Francisco in the amount of $136,000,
which was recorded as income on investments. This one-time
dividend resulted in an increase in the yield on earning assets of
0.10%, which would have been 3.77% if the dividend was
excluded. Without the cash dividend the yield on earning
asset would have increased from 3.77% in the second quarter of 2015
to 3.80% in the second quarter of 2016. The increase in
yields can be attributed to a change in the mix with higher earning
average loans increasing and lower earning average investments
decreasing. Average loan balances increased from $269,798,000
in the first six months of 2015 to $297,764,000 during the first
six months of 2016 while average investment balances decreased from
$285,699,000 during the first six months of 2015 to $269,828,000
during the first six months of 2016.
The average balance of earning assets increased $6.9 million
(1.2%) from $558.9 million in the second quarter of 2015 to $565.8
million in the second quarter of 2016 and for the six months ended
June 30, 2016, increased $12.1 million (2.2%) to $568.6 million
from $556.5 million for the six months ended June 30, 2015.
The average cost of funds decreased from 0.28% in the second
quarter of 2015 and the first six months of 2015 to 0.26% in the
second quarter of 2016 and the first six months of 2016.
Average deposits increased $15.2 million (3.0%) from $506.6 million
during the second quarter of 2015 to $521.8 million during the
second quarter of 2016 and $15.0 million (3.0%) from $505.1 million
from the first half of 2015 to $520.1 million to the first half of
2016. Average borrowings decreased from $14.5 million during
the second quarter of 2015 to $14.3 million during the second
quarter of 2016 and increased from $12.8 million from the first
half of 2015 to $19.3 million to the first half of 2016.
Noninterest Income and Expense
Noninterest income for the second quarter of 2016 was $363,000,
down from $507,000 in the second quarter of 2015 and was consistent
for the six months ended June 30, 2016 and 2015, at $1.1
million. On a quarter over quarter basis, the decrease
in noninterest income was predominately related to a decrease in
income from OREO properties from $90,000 in the second quarter of
2015 to zero in 2016 and a decrease in gain on sale of securities
from $51,000 in 2015 to a loss of $1,000 in 2016. The
decrease in OREO income results from the sale of an income
producing OREO property in March 2016. On a year over year
basis, the steadiness in noninterest income was primarily due to an
increase in the gain on sale of securities partially offset by a
decrease in rental income from OREO properties. Gain on sale
of securities was $281,000 in the first half of 2016 compared to
$218,000 for the first half of 2015 and rental income from OREO
properties was $161,000 in 2015 compared to $106,000 in 2016.
The increase in gain on sale of securities was a result of the Bank
managing its portfolio in a volatile rate environment.
Noninterest expense remained consistent at $3.4 million for the
second quarters of 2016 and 2015 and for the six months ended June
30, 2016 and 2015, remained consistent at $7.2 million. While
there were many fluctuations in expense related items between the
second quarters of 2015 and 2016, two areas of note would be an
increase in salaries and benefits of $56,000 and a decrease in OREO
expense of $35,000. On a year over year basis, OREO related
expense increased $158,000 and salaries and benefits decreased by
$54,000. In addition, the Company also experienced a decrease
in operating losses of $48,000 from 2015 to 2016.
The fully taxable equivalent efficiency ratio for the second
quarter of 2016 increased to 62.3% from 60.5% for the second
quarter of 2015 and for the six months ended June 30, 2016,
decreased to 63.2% from 66.0% for the six months ended June 30,
2015.
Provision for Income Taxes
Federal and state income taxes for the quarter ended June 30,
2016 decreased by $93,000 from $745,000 in the second quarter of
2015 to $652,000 in the second quarter of 2016 and increased from
$1.2 million in the first six months of 2015 to $1.3 million in the
first half of 2016. The higher provision for taxes in the
first six months of 2016 compared to the first six months of 2015
resulted from an increase in taxable income partially offset by the
increase in tax benefits related to tax exempt loan interest.
Earnings Conference Call
The second quarter earnings conference call will be held
Thursday, July 21, 2016 at 1:30 p.m. Pacific Time (4:30 p.m.
Eastern Time). David T. Taber, President and Chief Executive
Officer, and Mitchell A. Derenzo, Executive Vice President and
Chief Financial Officer, both of American River Bankshares, will
lead a live presentation and answer analysts’
questions. Shareholders, analysts and other interested
parties are invited to join the call by dialing (888) 517-2513 and
entering the Conference ID 7773553#. A recording of the call
will be available approximately twenty-four hours after the call’s
completion on AmericanRiverBank.com.
About American River Bankshares
American River Bankshares (NASDAQ:AMRB) is the parent
company of American River Bank, a regional bank serving Northern
California since 1983. We give business owners more REACH by
offering financial expertise and exceptional service to complement
a full suite of banking products and services. Our honest approach,
commitment to community and focus on profitability is intended to
lead our clients to greater success. For more information, call
(800) 544-0545 or visit AmericanRiverBank.com.
Use of Non-GAAP Financial Measures
This news release contains certain non-GAAP (Generally Accepted
Accounting Principles) financial measures in addition to results
presented in accordance with GAAP. These measures include
tangible book value and taxable equivalent basis. Management
has presented these non-GAAP financial measures in this earnings
release because it believes that they provide useful and
comparative information to assess trends in the Company’s financial
position reflected in the current quarter and year-to-date results
and facilitate comparison of our performance with the performance
of our peers.
Net Interest Margin and Efficiency Ratio (non-GAAP
financial measures)
In accordance with industry standards, certain designated net
interest income amounts are presented on a taxable equivalent
basis, including the calculation of net interest margin and the
efficiency ratio. The Company believes the presentation of
net interest margin on a taxable equivalent basis using a 34%
effective tax rate allows comparability of net interest margin with
industry peers by eliminating the effect of the differences in
portfolios attributable to the proportion represented by both
taxable and tax-exempt loans and investments.
Tangible Equity (non-GAAP financial
measures)
Tangible common stockholders' equity (tangible book value)
excludes goodwill and other intangible assets. The Company
believes the exclusion of goodwill and other intangible assets to
create “tangible equity” facilitates the comparison of results for
ongoing business operations. The Company’s management
internally assesses its performance based, in part, on these
non-GAAP financial measures.
Forward-Looking Statements
Certain statements contained herein are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934 and
subject to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, that involve risks and
uncertainties. Actual results may differ materially from the
results in these forward-looking statements. Factors that
might cause such a difference include, among other matters, changes
in interest rates, economic conditions, governmental regulation and
legislation, credit quality, and competition affecting the
Company’s businesses generally; the risk of natural disasters and
future catastrophic events including terrorist related incidents;
and other factors discussed in the Company’s Annual Report on Form
10-K for the year-ended December 31, 2015, and in subsequent
reports filed on Form 10-Q and Form 8-K. The Company does not
undertake any obligation to publicly update or revise any of these
forward-looking statements, whether to reflect new information,
future events or otherwise, except as required by law.
American River Bankshares |
|
|
|
Condensed Consolidated Balance Sheets
(Unaudited) |
|
|
|
(Dollars
in thousands) |
|
|
|
|
|
|
|
|
|
June 30 |
|
December 31, |
|
June 30 |
|
ASSETS |
|
|
2016 |
|
|
|
2015 |
|
|
|
2015 |
|
|
Cash and
due from banks |
$ |
|
22,671 |
|
$ |
|
23,727 |
|
$ |
|
18,009 |
|
|
Interest-bearing deposits in banks |
|
|
999 |
|
|
|
750 |
|
|
|
1,000 |
|
|
Investment securities |
|
|
255,023 |
|
|
|
274,442 |
|
|
|
276,951 |
|
|
Loans
& leases: |
|
|
|
|
|
|
|
Real estate |
|
|
269,119 |
|
|
|
251,818 |
|
|
|
241,216 |
|
|
Commercial |
|
|
36,193 |
|
|
|
36,195 |
|
|
|
32,034 |
|
|
Lease financing |
|
|
534 |
|
|
|
732 |
|
|
|
981 |
|
|
Other |
|
|
4,621 |
|
|
|
5,553 |
|
|
|
6,739 |
|
|
Deferred loan and lease origination fees, net |
|
|
(247 |
) |
|
|
(221 |
) |
|
|
(258 |
) |
|
Allowance for loan and lease losses |
|
|
(5,132 |
) |
|
|
(4,975 |
) |
|
|
(5,359 |
) |
|
Loans and leases, net |
|
|
305,088 |
|
|
|
289,102 |
|
|
|
275,353 |
|
|
Bank
premises and equipment, net |
|
|
1,305 |
|
|
|
1,407 |
|
|
|
1,461 |
|
|
Goodwill
and intangible assets |
|
|
16,321 |
|
|
|
16,321 |
|
|
|
16,321 |
|
|
Investment in Federal Home Loan Bank Stock |
|
|
3,779 |
|
|
|
3,779 |
|
|
|
3,779 |
|
|
Other
real estate owned, net |
|
|
896 |
|
|
|
3,551 |
|
|
|
3,781 |
|
|
Accrued
interest receivable and other assets |
|
|
19,729 |
|
|
|
21,561 |
|
|
|
20,235 |
|
|
|
$ |
|
625,811 |
|
$ |
|
634,640 |
|
$ |
|
616,890 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES & SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
|
195,903 |
|
$ |
|
190,548 |
|
$ |
|
173,324 |
|
|
Interest
checking |
|
|
59,686 |
|
|
|
61,324 |
|
|
|
61,353 |
|
|
Money
market |
|
|
127,864 |
|
|
|
135,186 |
|
|
|
132,551 |
|
|
Savings |
|
|
59,881 |
|
|
|
59,061 |
|
|
|
57,120 |
|
|
Time
deposits |
|
|
82,599 |
|
|
|
84,571 |
|
|
|
87,635 |
|
|
Total deposits |
|
|
525,933 |
|
|
|
530,690 |
|
|
|
511,983 |
|
|
Short-term borrowings |
|
|
5,000 |
|
|
|
3,500 |
|
|
|
3,500 |
|
|
Long-term borrowings |
|
|
6,000 |
|
|
|
7,500 |
|
|
|
7,500 |
|
|
Accrued
interest and other liabilities |
|
|
5,312 |
|
|
|
6,875 |
|
|
|
5,716 |
|
|
Total liabilities |
|
|
542,245 |
|
|
|
548,565 |
|
|
|
528,699 |
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Common stock |
$ |
|
42,311 |
|
$ |
|
49,554 |
|
$ |
|
53,307 |
|
|
Retained earnings |
|
|
37,094 |
|
|
|
34,418 |
|
|
|
31,492 |
|
|
Accumulated other
comprehensive income |
|
|
4,161 |
|
|
|
2,103 |
|
|
|
3,392 |
|
|
Total shareholders' equity |
|
|
83,566 |
|
|
|
86,075 |
|
|
|
88,191 |
|
|
|
$ |
|
625,811 |
|
$ |
|
634,640 |
|
$ |
|
616,890 |
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
Nonperforming loans and
leases to total loans and leases |
|
|
0.34 |
% |
|
|
0.56 |
% |
|
|
0.87 |
% |
|
Net (recoveries)
charge-offs to average loans and leases (annualized) |
|
|
-0.11 |
% |
|
|
0.12 |
% |
|
|
-0.04 |
% |
|
Allowance for loan and
lease losses to total loans and leases |
|
|
1.65 |
% |
|
|
1.69 |
% |
|
|
1.91 |
% |
|
|
|
|
|
|
|
|
|
American River
Bank Capital Ratios: |
|
|
|
|
|
|
|
Leverage Capital
Ratio |
|
|
10.46 |
% |
|
|
11.04 |
% |
|
|
11.58 |
% |
|
Common Equity Tier 1
Risk-Based Capital |
|
|
17.69 |
% |
|
|
19.07 |
% |
|
|
19.78 |
% |
|
Tier 1 Risk-Based
Capital Ratio |
|
|
17.69 |
% |
|
|
19.07 |
% |
|
|
19.78 |
% |
|
Total Risk-Based
Capital Ratio |
|
|
18.95 |
% |
|
|
20.32 |
% |
|
|
21.03 |
% |
|
|
|
|
|
|
|
|
|
American River
Bankshares Capital Ratios: |
|
|
|
|
|
|
|
Leverage Capital
Ratio |
|
|
10.41 |
% |
|
|
10.97 |
% |
|
|
11.51 |
% |
|
Tier 1 Risk-Based
Capital Ratio |
|
|
17.96 |
% |
|
|
19.34 |
% |
|
|
20.01 |
% |
|
Total Risk-Based
Capital Ratio |
|
|
19.21 |
% |
|
|
20.59 |
% |
|
|
21.26 |
% |
|
|
|
|
|
|
|
|
|
American River Bankshares |
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of
Income (Unaudited) |
|
|
|
|
|
|
|
|
(Dollars
in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second |
|
Second |
|
|
|
|
For the Six
Months |
|
|
|
|
|
Quarter |
|
Quarter |
% |
|
|
|
Ended June 30, |
% |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
Change |
|
|
|
|
2016 |
|
|
|
2015 |
|
Change |
|
|
Interest
income |
$ |
|
5,229 |
|
$ |
|
5,283 |
|
|
(1.0 |
) |
% |
|
$ |
|
10,505 |
|
$ |
|
10,185 |
|
|
3.1 |
|
% |
|
Interest
expense |
|
|
221 |
|
|
|
244 |
|
|
(9.4 |
) |
% |
|
|
|
455 |
|
|
|
492 |
|
|
(7.5 |
) |
% |
|
Net
interest income |
|
|
5,008 |
|
|
|
5,039 |
|
|
(0.6 |
) |
% |
|
|
|
10,050 |
|
|
|
9,693 |
|
|
3.7 |
|
% |
|
Provision for loan and lease losses |
|
|
- |
|
|
|
- |
|
|
- |
|
% |
|
|
|
- |
|
|
|
- |
|
|
- |
|
% |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges
on deposit accounts |
|
|
128 |
|
|
|
127 |
|
|
0.8 |
|
% |
|
|
|
257 |
|
|
|
244 |
|
|
5.3 |
|
% |
|
(Loss) gain on
sale or impairment of securities |
|
|
(1 |
) |
|
|
51 |
|
|
(102.0 |
) |
% |
|
|
|
281 |
|
|
|
218 |
|
|
28.9 |
|
% |
|
Rental income
from other real estate owned |
|
|
- |
|
|
|
90 |
|
|
(100.0 |
) |
% |
|
|
|
106 |
|
|
|
161 |
|
|
(34.2 |
) |
% |
|
Other
noninterest income |
|
|
236 |
|
|
|
239 |
|
|
(1.3 |
) |
% |
|
|
|
473 |
|
|
|
469 |
|
|
0.9 |
|
% |
|
Total noninterest
income |
|
|
363 |
|
|
|
507 |
|
|
(28.4 |
) |
% |
|
|
|
1,117 |
|
|
|
1,092 |
|
|
2.3 |
|
% |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
employee benefits |
|
|
2,101 |
|
|
|
2,045 |
|
|
2.7 |
|
% |
|
|
|
4,261 |
|
|
|
4,315 |
|
|
(1.3 |
) |
% |
|
Occupancy |
|
|
292 |
|
|
|
301 |
|
|
(3.0 |
) |
% |
|
|
|
590 |
|
|
|
594 |
|
|
(0.7 |
) |
% |
|
Furniture and
equipment |
|
|
163 |
|
|
|
179 |
|
|
(8.9 |
) |
% |
|
|
|
328 |
|
|
|
356 |
|
|
(7.9 |
) |
% |
|
Federal Deposit
Insurance Corporation assessments |
|
|
76 |
|
|
|
76 |
|
|
- |
|
% |
|
|
|
156 |
|
|
|
156 |
|
|
- |
|
% |
|
Expenses related
to other real estate owned |
|
|
20 |
|
|
|
55 |
|
|
(63.6 |
) |
% |
|
|
|
360 |
|
|
|
202 |
|
|
78.2 |
|
% |
|
Other expense |
|
|
763 |
|
|
|
759 |
|
|
0.5 |
|
% |
|
|
|
1,511 |
|
|
|
1,605 |
|
|
(5.9 |
) |
% |
|
Total noninterest
expense |
|
|
3,415 |
|
|
|
3,415 |
|
|
- |
|
% |
|
|
|
7,206 |
|
|
|
7,228 |
|
|
(0.3 |
) |
% |
|
Income
before provision for income taxes |
|
|
1,956 |
|
|
|
2,131 |
|
|
(8.2 |
) |
% |
|
|
|
3,961 |
|
|
|
3,557 |
|
|
11.4 |
|
% |
|
Provision for income taxes |
|
|
652 |
|
|
|
745 |
|
|
(12.5 |
) |
% |
|
|
|
1,285 |
|
|
|
1,215 |
|
|
5.8 |
|
% |
|
Net
income |
$ |
|
1,304 |
|
$ |
|
1,386 |
|
|
(5.9 |
) |
% |
|
$ |
|
2,676 |
|
$ |
|
2,342 |
|
|
14.3 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
$ |
|
0.19 |
|
$ |
|
0.18 |
|
|
5.6 |
|
% |
|
$ |
|
0.39 |
|
$ |
|
0.30 |
|
|
30.0 |
|
% |
|
Diluted
earnings per share |
$ |
|
0.19 |
|
$ |
|
0.18 |
|
|
5.6 |
|
% |
|
$ |
|
0.39 |
|
$ |
|
0.30 |
|
|
30.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest margin as a percentage of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average earning
assets |
|
|
3.64 |
% |
|
|
3.69 |
% |
|
|
|
|
|
3.64 |
% |
|
|
3.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
diluted shares outstanding |
|
|
6,746,099 |
|
|
|
7,674,711 |
|
|
|
|
|
|
6,933,435 |
|
|
|
7,754,319 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.84 |
% |
|
|
0.90 |
% |
|
|
|
|
|
0.85 |
% |
|
|
0.77 |
% |
|
|
|
Return on average equity |
|
|
6.29 |
% |
|
|
6.31 |
% |
|
|
|
|
|
6.37 |
% |
|
|
5.36 |
% |
|
|
|
Return on average tangible equity |
|
|
7.83 |
% |
|
|
7.75 |
% |
|
|
|
|
|
7.89 |
% |
|
|
6.57 |
% |
|
|
|
Efficiency ratio (fully taxable equivalent) |
|
|
62.26 |
% |
|
|
60.45 |
% |
|
|
|
|
|
63.20 |
% |
|
|
65.95 |
% |
|
|
|
American River Bankshares |
|
|
|
Condensed Consolidated Statements of
Income (Unaudited) |
|
|
|
(Dollars
in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Second |
|
First |
|
Fourth |
|
Third |
|
Second |
|
|
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
|
Interest
income |
$ |
|
5,229 |
|
$ |
|
5,276 |
|
$ |
|
5,325 |
|
$ |
|
5,458 |
|
$ |
|
5,283 |
|
|
Interest
expense |
|
|
221 |
|
|
|
234 |
|
|
|
229 |
|
|
|
240 |
|
|
|
244 |
|
|
Net
interest income |
|
|
5,008 |
|
|
|
5,042 |
|
|
|
5,096 |
|
|
|
5,218 |
|
|
|
5,039 |
|
|
Provision for loan and lease losses |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
Service charges
on deposit accounts |
|
|
128 |
|
|
|
129 |
|
|
|
122 |
|
|
|
132 |
|
|
|
127 |
|
|
(Loss) gain on
sale or impairment of securities |
|
|
(1 |
) |
|
|
282 |
|
|
|
- |
|
|
|
33 |
|
|
|
51 |
|
|
Rental income
from other real estate owned |
|
|
- |
|
|
|
106 |
|
|
|
87 |
|
|
|
87 |
|
|
|
90 |
|
|
Other
noninterest income |
|
|
236 |
|
|
|
237 |
|
|
|
224 |
|
|
|
238 |
|
|
|
239 |
|
|
Total noninterest
income |
|
|
363 |
|
|
|
754 |
|
|
|
433 |
|
|
|
490 |
|
|
|
507 |
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
Salaries and
employee benefits |
|
|
2,101 |
|
|
|
2,160 |
|
|
|
2,028 |
|
|
|
2,185 |
|
|
|
2,045 |
|
|
Occupancy |
|
|
292 |
|
|
|
298 |
|
|
|
295 |
|
|
|
294 |
|
|
|
301 |
|
|
Furniture and
equipment |
|
|
163 |
|
|
|
165 |
|
|
|
163 |
|
|
|
171 |
|
|
|
179 |
|
|
Federal Deposit
Insurance Corporation assessments |
|
|
76 |
|
|
|
80 |
|
|
|
85 |
|
|
|
83 |
|
|
|
76 |
|
|
Expenses related
to other real estate owned |
|
|
20 |
|
|
|
340 |
|
|
|
62 |
|
|
|
58 |
|
|
|
55 |
|
|
Other expense |
|
|
763 |
|
|
|
748 |
|
|
|
787 |
|
|
|
641 |
|
|
|
759 |
|
|
Total noninterest
expense |
|
|
3,415 |
|
|
|
3,791 |
|
|
|
3,420 |
|
|
|
3,432 |
|
|
|
3,415 |
|
|
Income
before provision for income taxes |
|
|
1,956 |
|
|
|
2,005 |
|
|
|
2,109 |
|
|
|
2,276 |
|
|
|
2,131 |
|
|
Provision for income taxes |
|
|
652 |
|
|
|
633 |
|
|
|
652 |
|
|
|
807 |
|
|
|
745 |
|
|
Net
income |
$ |
|
1,304 |
|
$ |
|
1,372 |
|
$ |
|
1,457 |
|
$ |
|
1,469 |
|
$ |
|
1,386 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
$ |
|
0.19 |
|
$ |
|
0.19 |
|
$ |
|
0.20 |
|
$ |
|
0.20 |
|
$ |
|
0.18 |
|
|
Diluted
earnings per share |
$ |
|
0.19 |
|
$ |
|
0.19 |
|
$ |
|
0.20 |
|
$ |
|
0.20 |
|
$ |
|
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest margin as a percentage of |
|
|
|
|
|
|
|
|
|
|
|
average
earning assets |
|
|
3.64 |
% |
|
|
3.63 |
% |
|
|
3.63 |
% |
|
|
3.72 |
% |
|
|
3.69 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
diluted shares outstanding |
|
|
6,746,099 |
|
|
|
7,130,444 |
|
|
|
7,315,109 |
|
|
|
7,501,459 |
|
|
|
7,674,711 |
|
|
Shares
outstanding-end of period |
|
|
6,655,980 |
|
|
|
6,994,300 |
|
|
|
7,343,649 |
|
|
|
7,343,649 |
|
|
|
7,730,157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Ratios (annualized): |
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.84 |
% |
|
|
0.87 |
% |
|
|
0.91 |
% |
|
|
0.92 |
% |
|
|
0.90 |
% |
|
Return on average equity |
|
|
6.29 |
% |
|
|
6.44 |
% |
|
|
6.71 |
% |
|
|
6.71 |
% |
|
|
6.31 |
% |
|
Return on average tangible equity |
|
|
7.83 |
% |
|
|
7.95 |
% |
|
|
8.28 |
% |
|
|
8.27 |
% |
|
|
7.75 |
% |
|
Efficiency ratio (fully taxable equivalent) |
|
|
62.26 |
% |
|
|
64.07 |
% |
|
|
60.72 |
% |
|
|
59.14 |
% |
|
|
60.45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
American River Bankshares |
|
Analysis of Net Interest Margin on Earning
Assets (Unaudited) |
|
(Taxable Equivalent Basis) |
|
(Dollars in thousands) |
|
Three months
ended June 30, |
|
2016 |
|
|
|
2015 |
|
|
ASSETS |
Avg Balance |
Interest |
Avg Yield |
|
Avg Balance |
Interest |
Avg Yield |
|
Taxable loans and
leases |
$ |
283,373 |
|
$ |
3,445 |
|
|
4.89 |
% |
|
$ |
267,888 |
|
$ |
3,339 |
|
|
5.00 |
% |
|
Tax-exempt loans and
leases |
|
17,050 |
|
|
232 |
|
|
5.47 |
% |
|
|
9,083 |
|
|
123 |
|
|
5.43 |
% |
|
Taxable investment
securities |
|
240,997 |
|
|
1,441 |
|
|
2.40 |
% |
|
|
254,676 |
|
|
1,657 |
|
|
2.61 |
% |
|
Tax-exempt investment
securities |
|
23,336 |
|
|
215 |
|
|
3.71 |
% |
|
|
26,202 |
|
|
255 |
|
|
3.90 |
% |
|
Corporate stock |
|
76 |
|
|
8 |
|
|
42.34 |
% |
|
|
74 |
|
|
11 |
|
|
59.62 |
% |
|
Interest-bearing
deposits in banks |
|
999 |
|
|
2 |
|
|
0.81 |
% |
|
|
978 |
|
|
1 |
|
|
0.41 |
% |
|
Total
earning assets |
|
565,831 |
|
|
5,343 |
|
|
3.80 |
% |
|
|
558,901 |
|
|
5,386 |
|
|
3.87 |
% |
|
Cash & due from
banks |
|
28,070 |
|
|
|
|
|
22,221 |
|
|
|
|
Other assets |
|
36,849 |
|
|
|
|
|
39,715 |
|
|
|
|
Allowance for loan &
lease losses |
|
(5,098 |
) |
|
|
|
|
(5,345 |
) |
|
|
|
|
$ |
625,652 |
|
|
|
|
$ |
615,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES & SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Interest checking and
money market |
$ |
188,365 |
|
$ |
35 |
|
|
0.07 |
% |
|
$ |
189,816 |
|
$ |
62 |
|
|
0.13 |
% |
|
Savings |
|
59,679 |
|
|
5 |
|
|
0.03 |
% |
|
|
57,915 |
|
|
9 |
|
|
0.06 |
% |
|
Time deposits |
|
83,087 |
|
|
142 |
|
|
0.69 |
% |
|
|
88,116 |
|
|
137 |
|
|
0.62 |
% |
|
Other borrowings |
|
14,286 |
|
|
39 |
|
|
1.10 |
% |
|
|
14,544 |
|
|
36 |
|
|
0.99 |
% |
|
Total interest bearing
liabilities |
|
345,417 |
|
|
221 |
|
|
0.26 |
% |
|
|
350,391 |
|
|
244 |
|
|
0.28 |
% |
|
Noninterest bearing demand
deposits |
|
190,646 |
|
|
|
|
|
170,792 |
|
|
|
|
Other liabilities |
|
6,258 |
|
|
|
|
|
6,266 |
|
|
|
|
Total liabilities |
|
542,321 |
|
|
|
|
|
527,449 |
|
|
|
|
Shareholders' equity |
|
83,331 |
|
|
|
|
|
88,043 |
|
|
|
|
|
$ |
625,652 |
|
|
|
|
$ |
615,492 |
|
|
|
|
Net interest
income & margin |
|
$ |
5,122 |
|
|
3.64 |
% |
|
|
$ |
5,142 |
|
|
3.69 |
% |
|
|
|
|
|
|
|
|
|
|
Six months
ended June 30, |
|
2016 |
|
|
|
2015 |
|
|
ASSETS |
Avg Balance |
Interest |
Avg Yield |
|
Avg Balance |
Interest |
Avg Yield |
|
Taxable loans and
leases |
$ |
281,143 |
|
$ |
6,807 |
|
|
4.87 |
% |
|
$ |
263,161 |
|
$ |
6,596 |
|
|
5.05 |
% |
|
Tax-exempt loans and
leases |
|
16,621 |
|
|
462 |
|
|
5.59 |
% |
|
|
6,637 |
|
|
167 |
|
|
5.07 |
% |
|
Taxable investment
securities |
|
245,310 |
|
|
2,993 |
|
|
2.45 |
% |
|
|
259,312 |
|
|
3,073 |
|
|
2.39 |
% |
|
Tax-exempt investment
securities |
|
24,446 |
|
|
461 |
|
|
3.79 |
% |
|
|
26,314 |
|
|
509 |
|
|
3.90 |
% |
|
Corporate stock |
|
72 |
|
|
14 |
|
|
39.10 |
% |
|
|
73 |
|
|
12 |
|
|
33.15 |
% |
|
Interest-bearing
deposits in banks |
|
992 |
|
|
3 |
|
|
0.61 |
% |
|
|
989 |
|
|
2 |
|
|
0.41 |
% |
|
Total earning
assets |
|
568,584 |
|
|
10,740 |
|
|
3.80 |
% |
|
|
556,486 |
|
|
10,359 |
|
|
3.75 |
% |
|
Cash & due from
banks |
|
28,108 |
|
|
|
|
|
21,746 |
|
|
|
|
Other assets |
|
38,723 |
|
|
|
|
|
39,511 |
|
|
|
|
Allowance for loan
& lease losses |
|
(5,051 |
) |
|
|
|
|
(5,325 |
) |
|
|
|
|
$ |
630,364 |
|
|
|
|
$ |
612,418 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES & SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Interest checking and
money market |
$ |
188,463 |
|
$ |
75 |
|
|
0.08 |
% |
|
$ |
195,141 |
|
$ |
131 |
|
|
0.14 |
% |
|
Savings |
|
59,442 |
|
|
10 |
|
|
0.03 |
% |
|
|
58,405 |
|
|
17 |
|
|
0.06 |
% |
|
Time deposits |
|
83,449 |
|
|
281 |
|
|
0.68 |
% |
|
|
87,907 |
|
|
274 |
|
|
0.63 |
% |
|
Other borrowings |
|
19,327 |
|
|
89 |
|
|
0.93 |
% |
|
|
12,765 |
|
|
70 |
|
|
1.11 |
% |
|
Total interest
bearing liabilities |
|
350,681 |
|
|
455 |
|
|
0.26 |
% |
|
|
354,218 |
|
|
492 |
|
|
0.28 |
% |
|
Noninterest bearing demand
deposits |
|
188,791 |
|
|
|
|
|
163,635 |
|
|
|
|
Other liabilities |
|
6,362 |
|
|
|
|
|
6,403 |
|
|
|
|
Total
liabilities |
|
545,834 |
|
|
|
|
|
524,256 |
|
|
|
|
Shareholders'
equity |
|
84,530 |
|
|
|
|
|
88,162 |
|
|
|
|
|
$ |
630,364 |
|
|
|
|
$ |
612,418 |
|
|
|
|
Net interest
income & margin |
|
$ |
10,285 |
|
|
3.64 |
% |
|
|
$ |
9,867 |
|
|
3.58 |
% |
|
|
|
|
|
|
|
|
|
|
Investor and Media Contact:
Mitchell A. Derenzo
Chief Financial Officer
American River Bankshares
(916) 231-6723
American River Bankshares (NASDAQ:AMRB)
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